What acts are prohibited in the trading of goods through the Commodity Exchange?

The Ministry of Industry and Trade is drafting a Decree to replace Decree No. 158/2006/ND-CP dated December 28, 2006 of the Government detailing the Law on Commerce on the purchase and sale of goods through commodity exchanges, amended and supplemented by Decree No. 51/2018/ND-CP dated April 9, 2018.

In the draft Decree on trading of goods through Commodity Exchanges, the Ministry of Industry and Trade proposes prohibited acts in trading of goods through Commodity Exchanges.

According to the draft Decree, prohibited acts in the trading of goods as prescribed in Point d, Clause 2, Article 71 of the Commercial Law include:

Directly or indirectly committing acts of fraud, deception, falsification of documents, creation of false information or publication of false information or concealment of information or omission of necessary information causing serious misunderstandings affecting the organization of the futures market, futures trading, futures clearing or provision of futures services.

Using inside information to trade futures for oneself or for another individual or organization; disclosing, providing inside information or brokering for another organization or individual to trade futures on the basis of inside information.

Prohibited acts in the trading of goods through the Commodity Exchange

Using one or more of one's own or other people's trading accounts or colluding to conduct futures trading to create artificial supply and demand; trading futures by colluding with or enticing others to buy or sell to manipulate futures prices; combining or using other trading methods or combining to spread false rumors or provide false information to the public to manipulate futures prices.

Carrying out activities of organizing futures markets, trading futures, and services related to futures contrary to the provisions of this Decree.

Using customer accounts and assets without customer authorization or in violation of the law or abusing trust to appropriate customer assets.

Lending accounts to others to trade futures, taking ownership of futures on behalf of others leads to manipulation of prices of commodities that are the underlying assets of futures contracts.

The draft Decree clearly states that the Commodity Exchange operates on the principle of prioritizing public interests, maintaining fairness, order and transparency of the commodity futures trading market.

The function of a commodity exchange is to provide the necessary venue and facilities for conducting futures contracts, to organize the futures market and to supervise futures trading.

The Commodity Exchange is a public interest entity. The Commodity Exchange is licensed and conducts business activities in accordance with the provisions of this Decree, other relevant provisions of Vietnamese law and the commitments of the Socialist Republic of Vietnam in international treaties to which the Socialist Republic of Vietnam is a member.

See the full draft and comment here.

Source: https://congthuong.vn/hanh-vi-nao-bi-cam-trong-hoat-dong-mua-ban-hang-hoa-qua-so-giao-dich-hang-hoa-326177.html